Tag Archives: Incumbents

Airtel & Vodafone India: Royally screwed!

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The incumbents had a cosy oligopoly. Their talk plans were similar with no real service differentiator. The new players have changed the equation with “per second plans”. The best part is, according to media reports, is that the monopoly of the COAI (the rag tag motley group of lame assholes) has been called into question.

Calling the COAI as “assholes” is only a reflection of the personal opinion brought about by frustration because of their intense lobbying to delay any customer friendly initiative. After the broadband thingy is sorted out, I would be pressing TRAI for any information to make the telecom companies more responsive. Plus, to find out as to why they permitted the minute plans as existed before and ask them for any compensation if not in monetary terms but force the companies for any excess talk time etc etc.

This maybe a loud thinking but then we should get our money’s worth. It took a lot of time to get Vodafone to work and improve upon their services.

Wait and watch. I feel that the best is about to begin as yet. Let’s wait for the mobile number portability and the magic. The ‘revolution’ my dear friends has come NOW.

Indian Telecom: End of the boom?

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This is what the headlines in Business Standard say. Let me highlight the relevant portions of the report for your eyes only:

Rising competition (13 licences for each circle), falling tariffs (lowest in the world, falling further because of per-second billing), rapidly declining average revenue per user (ARPU) because the newer subscribers are the low spenders in semi-urban and rural areas, and high taxes (about 30 per cent in all) ……….have put paid to the aspirations of not only the new entrants but also incumbents……..deleted.

Forget about fancy valuations. I have always contested the claim about the “lowest tariff in the world” because it is not in consonance with the actual “gini coefficient”; which means that we pay more than we can actually spend. It is a bitter truth but then the newspapers need a lifeline of their advertising spends, so rest assured, this truth will NEVER be out.

……Nearly 15 million more users came on board in September….. It has also brought into focus the phenomenon of dual SIMs — existing subscribers are acquiring additional connections, resulting in a seeming increase in subscribers but in fact merely leading to a bill being split between two or more service providers….Deleted.

For the first time, to my knowledge, a newspaper daily has mentioned this in black and white. Let me also repeat. The operators keep the discarded number for a period of atleast 3 months before it is “terminated”. So even though, a customer has left in the middle of month, the disconnection would not be reported for another 3 months (which, I believe is an industry practise). The same customer may acquire multiple connections or dual SIMS; so it is the growth of the SIM cards and perhaps not the customers which is reported. In any case, the simple headcount may not be feasible.

Industry executives blamed much of the ills on the government and the regulator. With falling tariffs, they need to cut costs, but their hands are tied because 35-40 per cent of their costs are taxes and other regulatory expenses. They have to pay 5 per cent of their revenue even from rural areas towards the universal service obligation fund which is meant to promote rural telephony. They said there was no need for the regulator to push for pay-per-second billing by all…… Deleted.

Now this is something that industry officials would always bleat about. Let them come out openly against the said “policies”…shadow fighting the Government wouldn’t help. For one simple reason. If these morons had any iota of service towards customers, I would have sympathized with them. But, they treat their customers like dirt; more so like crap cash cows who feeds in their kitties with little change so that likes of Mittal and his ilk can reap in obscene profits. In any case, let them prove their worth with their commitment to service, their willingness to be transparent, their approachability and customer care in the true sense of the term. People need their money’s worth but alas! My countrymen are basically lazy bastards who wish to have everything on platter without fighting for it.

…….the incumbents said they remain committed and focused on growth. “We will continue to enhance our market leadership and simultaneously open new revenue streams like m-commerce, m-entertainment, digital media and many other products……Deleted.

They have no real option but to focus on Value Added Services which is “babes, bikinis and bollywood”. Unless these people want to “focus” on phone sex services which would be a “high revenue earner” for them.

Rest of the write up seems to sum up the gloom and “brave words” just to reassure the shareholders that “we are up to it”. That we would weave our small little web of deceit, of lies and pull wool over the regulators and leave no stone unturned to defraud our customers because they are basically bunch of idiots and nincompoops. No one knows how much unaccounted for wealth flows in and out of system or whether this elaborate system allows them to launder their money in more effective way. There is no accountability to the customers because they are using a PUBLIC resource and merely by adding value to it doesn’t entitle them to the ownership of it.

Sadly, this isn’t mentioned anywhere. This of course, would be mentioned at all.

Telecom trends of 2009

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This is not the year end prediction but sadly all the action is taking place in the mobile arena. We are not going to see anything major happening in wireline business because it’s not “cool”.

First, the contentious number portability system is going to be launched initially in the four metros. I can bet that this would come into play only after Reliance launches it’s GSM service. For very obvious reasons because it would be betting big on the churn specially from the lower end of the market. It has already placed orders for “millions of handsets” and is looking forward to flood Indian market with “choice”. Expect some rude shocks for the incumbents.

The exact mechanism isn’t clear but there is going to be a big mess initially. I am sure that the operators would want to put across punitive “termination charges”, get host of clearances etc etc before you can heave a sigh of relief from it’s evil clutches. Yet, there is no differentiator between the Shylocks and the Satans in the market because at end of the day, they are all part of the same shit hole. Expect some high voltage drama here.

Second, the 3G licenses would be issued. There is no final word as to how this is going to be achieved; we are waiting for the Minister to feed fat on more money. By the way, Pioneer has a damning expose on their wrong doings over the past one year. (Link Source) Unless,Mr Minister is fed fat in his Swiss Bank account (Indian banking system sucks) we are not going to see anything move in this direction.

Mobile value added services is not going to add anything extra unless operators offer free porn. Imagine, free streaming porn without any restriction and daily MMS scandals! Since, Indians are loath to accept anything that comes out in the open, they could start streaming this for select few, obviously for a higher remuneration. I wonder why no one has thought about it. Callback ringtones are a passe’. So, not much of an action there too.

Mobile Virtual Network Operators would perhaps be legalised under immense pressure from the business house of Tatas. They are very keen to expand their “brand”; I have not seen any major advertising campaign from Virgin Mobile in recent times. They are spiked and spooked and relegated to some corner uncared for. How would that really matter? Does having more operators actually make sense? I believe that one size fits all strategy is not feasible. There are scores of people who would be happy to make unlimited outgoing calls for a fixed sum. Some people like to call telemarketing companies for pranks. Some people like to call fixed “hotline numbers” which offer “anonymity” without realising that the calls are routed within India alone. Some people like SMS alone. I feel that there would be companies to cater to such sections of deviants alone unless someone wants to prove me wrong.

So basically, we are left with no real action. 3G and number portability would be launched when Reliance announces it’s intention to start it’s GSM services. 3G licenses would be auctioned when Mantri ji has a green signal from his swiss banker. MVNO is an old tune from equally old flute; after virgin’s debacle no one wants to burn their backsides.

Where does the landline fit it? What of the frigging e governance issues? What of the “e learning”? Sheesh. Such lofty ideals would be done to waste? Who has the time to bother about such issues?

Although, I do see some reduction in the price when the price of international bandwidth crashes; the demand from the cyber coolies reduces as a result of economic downturn and telecom operators would be forced to deploy their “excessive bandwidth” for residential purposes. We might see the death of dial up; unless BSNL wants to keep it on a life support system. Since, they are only ones on the national scene offering it for free! Morons.

Happy 2009!